The German Association of Cities (Deutscher Städtetag) fears that planned cuts to the Housing Benefit (Wohngeld) will impose an additional burden on local governments. According to Christian Schuchardt, the CEO of the Association, some individuals who lose the financial support may fall back onto basic social security, meaning that the cities would then have to shoulder some of the costs for rent and heating.
Schuchardt also called for a simplification of the application processes. He expressed disappointment that the Federal Government is not leveraging the reform opportunity to significantly streamline the application procedures, noting that the deadlines included in the current bill are far too tight.
While Schuchardt acknowledged that the Federal Government is facing financial constraints and addressing these through reforms, he emphasized a critical consequence: if the planned reform results in fewer people receiving the Housing Benefit while the benefit itself is simultaneously reduced, the federal and state governments may save costs, but the municipalities could face increased expenses.
Finally, he reiterated a demand stemming from the recent Conference of Prime Ministers with Chancellor Friedrich Merz, where the federal and state governments agreed to cover the financial strain on municipalities resulting from federal legislation. Schuchardt insisted that this commitment must also apply to the Housing Benefit reform.
